As I said last week, a plunge was coming and we got it this week. Just one-day crash on the last day of Oct wiped out the whole month's gain for SPX. See the chart below. It has not only broken out down from its long-term up channel, it has also broken down from a bearish ascending wedge. This is just before the most contested election and the next FOMC. If we see anything similar to what we had seen in Aug, it could tank to 5100 in the weeks ahead.
Don't rule out this possibility. Actually the chance is not small for a big waterfall crash following the election.
BE WARNED and PREPARED!
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